Gold Falls as Dollar Strength and Rate-Hike Fears Outweigh Geopolitical Tensions

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Gold's September pullback deepened Wednesday as a stronger U.S. dollar and renewed inflation fears pushed the metal to its lowest level in more than three weeks, with spot gold falling 0.6% to $4,302.20 an ounce and December futures dropping 1.1% to $4,349.80. The move highlights a dramatic shift in the rate backdrop: even escalating U.S.-Iran tensions are failing to generate a sustained safe-haven rally because investors fear an oil shock could force the Federal Reserve to tighten policy again. Federal Reserve Governor Michael Barr said the central bank may need to raise rates if inflation fails to cool quickly, reinforcing Chair Kevin Warsh's recent hawkish tone, and traders now assign a 68% probability of a rate hike this month, according to CME FedWatch. The immediate catalysts are U.S. labor data, with the ADP employment report due Wednesday and nonfarm payrolls Friday, as weak numbers could reduce rate-hike expectations and give gold room to rebound, while strong data would likely keep bullion under pressure.

Impact on assets 5

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Gold.com, Inc.
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Gold.com, Inc. is not mentioned; gold price decline due to dollar strength and rate-hike fears.

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⛏Gold Futures
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Gold futures fall on dollar strength and rate-hike fears outweighing geopolitical tensions.